Close once. Build with confidence. Convert automatically. Select Capital Funding structures construction-to-permanent loans that take your project from groundbreaking through completion — and directly into long-term financing — without a second application, a second closing, or refinancing risk. One lender, one process, nationwide.
| Traditional Two-Close Approach | Construction-to-Perm One-Time Close |
|---|---|
|
Step 1
Construction Loan Application • Closing #1 • Closing Costs #1 ↓
Construction Phase
Draws During Build ↓
Certificate of Occupancy Issued
↓
Step 2
Separate Permanent Mortgage • New Application Required • Re-Qualification Required • New Appraisal Required • Closing #2 • Closing Costs #2 ↓
Refinancing Risk
Rates May Have Risen 2 Applications · 2 Closings · 2 Sets of Costs · Rate Uncertainty |
Single Application + Single Closing
Rate Can Be Locked at Origination ↓
Construction Phase
Flexible Draw Schedule ↓
Certificate of Occupancy Issued
↓
Automatic Conversion to Permanent Mortgage
✅ No New Application ✅ No Re-Qualification ✅ No Second Closing ✅ No Second Closing Costs ↓
Long-Term Permanent Financing
In Place ✅ 1 Application · 1 Closing · 1 Set of Costs · Rate Certainty |
Build your custom home with a single loan that covers the entire process — from groundbreaking to CO — and converts to a permanent mortgage at completion without a second closing.
Finance spec home construction and lock in your permanent financing at origination — eliminating the rate uncertainty and double-closing overhead of a two-close structure during the build period.
Fund multifamily construction with a single-close loan that provides draw flexibility during the build phase and automatically converts to long-term permanent financing once the project is complete.
In rising or volatile rate environments, a C2P loan that locks the permanent rate at origination protects borrowers from rate increases that occur during a long construction period.
A single-close C2P loan eliminates the duplicate closing costs of a two-close approach — saving thousands of dollars that would otherwise go to a second set of lender fees, title, escrow, and appraisal costs.
Structure a single commercial construction-to-perm loan that funds the build phase and transitions seamlessly into long-term commercial permanent financing — without re-qualification risk at completion.
Single-close construction-to-permanent financing for single-family homes — custom builds, spec projects, and in-fill development — with one closing, one lender, and automatic conversion to a permanent mortgage.
Finance your custom home construction with a single-close C2P loan — lock your permanent rate at origination, draw funds throughout the build, and convert seamlessly at certificate of occupancy.
Spec home construction-to-perm financing built for experienced builders — flexible draws during construction, a single closing,
Single-close construction-to-permanent financing for multifamily apartment communities — one closing, milestone-based draws, and automatic conversion to long-term permanent financing at project completion.
Construction-to-permanent financing for commercial ground-up projects — office, retail, industrial, and mixed-use — in a single-close structure that eliminates the two-close complexity of conventional commercial construction lending.
Single-close C2P financing for mixed-use developments combining residential, retail, and commercial components — one loan, one closing, and a direct path to long-term permanent financing.
Finance substantial renovation projects with a single loan that covers the renovation phase through draws and converts to permanent financing at completion — without the cost and complexity of a mid-project refinance.
Need just the construction phase? Our standalone ground-up construction loans provide fast, flexible financing with same-day expressions of interest and in-house draw management.
Share your project details — property type, construction scope, budget, plans and permits, builder information, and permanent financing goals — with our team.
We underwrite both phases together — the construction loan and the permanent mortgage — in a single review process, so you qualify once and move forward with certainty for both phases.
Close once. Your C2P loan is structured with the construction phase and permanent phase clearly defined — draws are established, the permanent rate is set, and the conversion trigger is confirmed.
Draw & Build Execute your construction with in-house draw management. Submit draw requests, receive approximately one-week turnaround on disbursements, and complete your project on schedule.
Upon certificate of occupancy or project completion, your loan converts to the permanent mortgage — no new application, no re-qualification, no second closing, no additional closing costs.
| Feature | Two-Close Construction + Permanent | Construction-to-Perm Loan (One-Time Close) |
|---|---|---|
| Number of Applications | Two separate applications | ✅ Single application |
| Number of Closings | Two | ✅ One |
| Closing Costs | Paid twice | ✅ Paid once |
| Re-Qualification Required | Yes — full new underwriting at conversion | ✅ No — already approved for both phases |
| Refinancing Risk | Yes — rates may rise during build | ✅ No — committed at origination |
| Rate Lock on Permanent | Not available at construction close | ✅ Can lock permanent rate at origination |
| Number of Lenders | Often two separate lenders | ✅ Single lender from start to finish |
| Documentation Burden | Two full packages | ✅ Single unified package |
| Conversion Process | Full refinancing required | ✅ Automatic or simplified conversion |
| Approval Certainty | No guarantee of permanent approval at close | ✅ Permanent financing committed upfront |
A construction-to-permanent (C2P) loan — also called a one-time close or single-close construction loan — is a financing instrument that combines the construction phase and the permanent mortgage into a single loan. During construction, the borrower draws funds in stages as building milestones are completed, paying interest only on the amount drawn. When construction is complete and a certificate of occupancy is issued, the loan automatically converts to a permanent mortgage — a long-term financing instrument — without the borrower needing to submit a new application, re-qualify, or incur a second set of closing costs.
The C2P loan process begins with a single application and a single closing. At closing, both the construction loan terms and the permanent mortgage terms are established. During the construction phase, funds are disbursed in draws tied to completed milestones — foundation, framing, rough-in work, exterior, interior finishes, and final completion. The borrower typically makes interest-only payments on the drawn balance during construction. Once the project is complete and the certificate of occupancy is issued, the loan converts to the permanent mortgage phase — at which point regular principal and interest payments begin under the pre-established permanent loan terms.
In a traditional two-close approach, the borrower takes out a standalone construction loan to fund the building phase and then applies for a separate permanent mortgage — with a new application, new appraisal, new underwriting, and new closing — once construction is complete. This creates double closing costs, requires the borrower to qualify twice, exposes them to refinancing risk if rates rise during the construction period, and introduces uncertainty about whether permanent financing will be available at completion. A construction-to-permanent loan eliminates all of these risks by committing to both phases from the start with a single closing, a single qualification, and a single set of costs.
Refinancing risk is the exposure a borrower faces when they take a standalone construction loan without a committed permanent mortgage in place. If interest rates rise significantly during the construction period, the borrower may face materially higher costs when they go to close the permanent loan at completion — or may struggle to qualify under the new, higher-rate environment. A construction-to-perm loan eliminates refinancing risk by locking in the permanent financing terms at origination, before construction begins, so the borrower knows exactly what their long-term payment will be regardless of what rates do during the build.
Construction-to-perm loans can be used for a wide range of construction projects, including:
Each project is evaluated individually based on the construction scope, budget, plans and permit status, builder experience, and the borrower’s qualifications for the permanent phase.
Select Capital Funding’s construction loan program offers up to 90% loan-to-cost (LTC) on both land and construction costs, with loan-to-completed value (LTCV) up to 70% of the as-completed appraised value. Specific LTC available on a given C2P transaction depends on the project type, the borrower’s experience, the construction budget, and the permanent phase qualifying metrics. Each deal is structured individually — contact our team to discuss the right leverage for your project.
Yes. Select Capital Funding can structure C2P loans that include both the land acquisition costs and the construction costs in a single instrument — so the borrower finances the land purchase, the construction draws, and the permanent mortgage all within one unified loan process. This eliminates the need to close a separate land loan before construction begins and creates a streamlined path from land purchase through completed building to permanent financing.
The conversion typically occurs at one of several defined trigger events established at origination — most commonly the issuance of a certificate of occupancy (CO), the achievement of a defined occupancy or stabilization threshold, or the passing of a specified date. The conversion trigger is clearly defined in the loan agreement at closing so both the borrower and lender have certainty about when and how the transition occurs. Once the trigger is met, the loan moves into the permanent mortgage phase — typically without additional documentation, re-appraisal, or closing requirements.
Yes, in most cases. During the construction phase, borrowers typically make interest-only payments on the drawn balance of the loan — the amount that has been disbursed — rather than paying principal and interest on the full committed loan amount. This keeps monthly payments manageable during the construction period before the property is generating income or is occupied. Once the loan converts to the permanent phase, regular principal and interest payments begin under the pre-established permanent loan terms.
Select Capital Funding’s in-house construction team manages fund controls and on-site inspections throughout the construction phase. Draw requests are submitted as construction milestones are completed, and our team coordinates inspections to verify completed work before releasing each disbursement. Draw request turnaround is approximately one week — keeping construction moving without the bottlenecks that slow-moving bank draw processes create. In-house draw management is a significant operational advantage for builders who need reliable, responsive disbursement throughout a project.
C2P loan eligibility is based on a combined assessment of two sets of criteria: the construction phase (project quality, construction budget, builder experience, plans and permits, site conditions) and the permanent phase (borrower income, assets, creditworthiness, and the as-completed property value). Because both phases are underwritten at origination, borrowers must qualify for both components simultaneously. Select Capital Funding’s approach prioritizes overall project quality and borrower experience alongside standard financial metrics.
The initial review process typically includes:
Providing organized, complete project information upfront helps our team deliver a same-day expression of interest and advance toward a single, efficient closing.
Whether you’re building a custom home, developing a spec community, or constructing a multifamily or commercial project — our team can structure a construction-to-perm loan that takes you from groundbreaking to long-term permanent financing in a single, streamlined process.
